The recommendation of the Central Empowered Committee, a panel set up by the court to weigh the impact of industrial projects on forests and wildlife, was conveyed to the state government on Monday.

The panel, set up by the court to weigh the impact of industrial projects on forests and wildlife, had arrived in the state on Saturday to inspect the implementation of its suggestions before submitting its final report.

Earlier, the Odisha government had drawn flak from the panel for allowing leases to continue operations under deemed extension for long periods. Even now, about 54 mining leases in the state are operating under deemed extension after expiry of their leases. The expiry period of the leases ranges from five to 25 years.

In its report in April 2010, the CEC had pointed to misuse of the 'deemed extension' clause in Odisha under Rules 24-A (6) of Mineral Concession Rules-1960.

"Under the garb of deemed extension clause (Rules 24-A (6)) of Mineral Concession Rules-1960 and because of the non-implementation of the provisions of the Forest (Conservation) Act and the other applicable rules and guidelines, widespread and rampant illegal mining operations have been taking place in Odisha," the report said. "Organised illegal mining is taking place with the active support of the state government and has resulted in the breakdown of the constitutional machinery."

Officials said that of the pending 351 mining lease renewal cases, the state has cleared only 115 so far. The CEC also advised officials to issue working permits on a priority basis and to hasten the clearance processes of Odisha Mining Corp's mining lease proposals.

Holding discussion with officials of the forest and mining department, Jiwarajka underscored the need to ensure inclusive growth in all mineral-rich areas of the state.

The state government has already set up a special purpose vehicle for coordination, planning, monitoring and canalising of funds from different sources for speedy development on the basis of the CEC's recommendations.